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The spread between your LTV and blended CPA determines either your profitability or your rate of growth, and a high valuation depends on balancing these two factors. To the extent that you have good word-of-mouth, activation or retention, these factors tend to drive down your CPA or drive up your LTV, and so are nice bonuses.
A business that strives for something like this should absolutely be charging money from day one, in order to establish baselines for their two key metrics: CPA (the cost to acquire a new customer) and LTV (the lifetime value of each acquired customer). Case Study: Continuousdeployment makes releases n.
Luckily, we also discovered that certain other metrics, like LTV and CPA were much better than we initially projected. Case Study: Continuousdeployment makes releases n. Towards a new entrepreneurship ▼ 2009 (88) ► December (4) Continuousdeployment for mission-critical applica.
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